The Government of the Federation of Bosnia and Herzegovina announced that the official data of the Tax Administration of FBiH confirm the stability of the labor market and the growth of employment despite the extensive reforms that marked this year. In this way, claims about the alleged “tens of thousands of layoffs” due to the increase of the minimum wage to 1,000 KM and the introduction of a non-working week in the trade sector are dismissed.
According to the data of the Tax Administration, as of October 31, 2025, there were 547,197 employeeswhich is 6,219 more compared to August, the month with the lowest number of employees in 2025. This growth is attributed to a combination of increases in the minimum wage and reductions in contributions, which made it easier for employers to do business while improving the position of workers.
The trend of employment growth is visible even in a longer period. In October 2025, it was recorded 7,486 employees more compared to the same month in 2022, and 7,820 more but in April 2023. These data, as pointed out by the Government of FBiH, completely refute the claims that the reforms caused a drop in employment.
Seasonal fluctuations in the number of employees, which are traditionally present at the end and beginning of the year, are still visible. Thus, a drop in employment was recorded between November and January: 4,552 workers (2022/23), 3,987 workers (2023/24) and 5,237 workers (2024/25). Similar forms are registered in the education sector due to fixed-term contracts, which is one of the reasons for changes to the Labor Law, according to the Government.
Contrary to the claims that “there is no aid to the real sector”, in the period January-September 2025, the right to support was realized 106,466 userswhile even 527,856 workers was included in the job preservation program. So far it has been paid 65.6 million KM in aidand the number of users decreased from month to month, which indicates the stabilization of the labor market.
The Government of the FBiH emphasizes that the increase in the minimum wage and the reduction in contributions acted as a double support – workers were provided with a better standard of living, and employers’ labor costs were reduced. Employment growth in the August-October period shows that the announced wave of layoffs did not occur.
Total balance of 528 new jobs in a year of strong reforms, it confirms the resilience of the labor market and the successful implementation of FBiH Government measures aimed at preserving jobs and the stability of the economy.
The Government of the Federation of BiH says that it remains committed to the implementation of policies that further strengthen the labor market, provide support to employers and improve the living standards of workers, while continuing social dialogue and creating a safer business environment.
